Polkadot has risen by more than 250% in less than two months, but the price is still below the ATH at $ 49.75. At the time of writing, it is trading for $ 36.46. This project focuses on scalability and divides transactions into many fragments. It processes them in parallel, similar to how it wants to achieve ETH 2.0.
Currently only Kusama carries out its own auctions. Polkadot is expected to begin the same process over the next few months. So let’s look at the top 3 indicators that confirm that DOT will go for the new ATH.
The integration of Polkadot into DeFi is increasing
Ecosystem Polkadot is constantly growing. On September 8, SubQuery, a decentralized data aggregator, raised $ 9 million to build Polkadot’s first layer of data aggregation.
As an example of this integration, the Moonbeam parachain has tokens built on the Substrate development tool. These tokens can be seamlessly sent to ETH wallets and smart contract addresses. On September 9, Moonbeam announced a partnership with Lido.
The latest update comes from dTrade, the decentralized stock exchange (DEX). Following the successful acquisition of $ 6.4 million in the initial round of funding in May 2021, DEX raised another $ 22.8 million market creation fund. Its purpose is to provide liquidity.
Derivatives data show the potential for new ATH
DOT futures’ total open interest rose from $ 360 million to $ 685 million in 30 days. It is a positive indicator because it reflects willingness of traders with leverage to keep your long positions open despite the growing trend.
When trading futures, longs (buyers) and shorts (sellers) always match, but their leverage effect differs. Any imbalance is reflected in the funding rate and derivatives exchanges will charge fees to the party that will use more leverage to balance risk.
The steady development of the protocol will be the ultimate driving force of the DOT price
In the first week of September, a healthy dose of optimism surfaced. The eight-hour funding rate reached 0.10%, which is 2.1% per week. Nevertheless, the situation returned after a 35% fall in prices on the morning of September 7.
Solana (SOL), Polkadot (DOT) and Cardano (ADA). Which one will win.
